• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Industrials

AGCO Is Planting the Seeds for a Buy Signal

This is a buy in the $44 to $42 area, risking a weekly close below $41. 
By BRUCE KAMICH
Jun 30, 2016 | 09:58 AM EDT
Stocks quotes in this article: AGCO

The share price of AGCO (AGCO) sold off sharply this month. Is the basing and accumulation over the past several months wrong, or is this another buying opportunity? Let's examine the charts and indicators for clues.  

In this 12-month daily chart of AGCO, above, we can see a December-January-February bottom and subsequent rally until earlier this month. In April, there was a golden cross, as the 50-day moving average went above the slower, 200-day moving average line.

The On-Balance-Volume (OBV) line was showing improvement, as buyers of AGCO had become more aggressive with more shares traded on days when AGCO closed higher. Recently, there are no divergences with momentum to raise flags. 

In this three-year weekly chart of AGCO, above, we can see that prices have been trading sideways over the past two years. Declines into the $45 to $40 area have been bought and rallies above $55 have been sold. The 40-week moving average line is flat and prices recently broke down below it.

Looking at the OBV line on a weekly timeframe, we see some accumulation in 2015, as the line moved up, and it has again climbed some this year. The Moving Average Convergence Divergence (MACD) oscillator recently crossed to a liquidate-longs sell signal. AGCO has dipped into the $46 to $44 area recently (the top of the $45 to $40 zone noted above), and could decline deeper into the $44 to $42 area, where buyers showed up last October and in the December-January-February period.

Bottom line? Existing longs with a low cost basis should hold. No position in AGCO? I would look to be a buyer in the coming weeks in the $44 to $42 area, risking a weekly close below $41. 

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities. 

TAGS: Investing | U.S. Equity | Industrials

More from Industrials

Deere Rips the Cover Off the Ball: Here's the Trade

Stephen Guilfoyle
May 19, 2023 11:15 AM EDT

Performance and guidance are solid across all segments.

Deere Should Break Its Downtrend on Earnings Beat and Raised Outlook

Bruce Kamich
May 19, 2023 7:34 AM EDT

The stock of the agricultural equipment giant appears poised to plow to higher ground.

Expeditors International Is Poised for an Upside Breakout

Bruce Kamich
May 17, 2023 2:17 PM EDT

Here's what traders could do now.

Watsco: Bearish No More?

Bruce Kamich
May 15, 2023 3:10 PM EDT

Take a look at the long side.

Bearish Bets: 3 Stocks You Seriously Should Think About Shorting This Week

Bob Lang
May 7, 2023 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:48 AM EDT CHRIS VERSACE

    Latest AAP Podcast With Portillo's CEO!

    Listen in as we talk with a rising star in the Chi...
  • 03:25 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Don't Just Sit There and 'Hope' for Your Stocks, M...
  • 07:32 AM EDT BOB LANG

    Webinar Thursday After the Close: Option Spread Trading

    Thursday, my good friend and colleague Sam DeMarco...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login